Use of the Automated Teller Machine (ATM) has grown exponentially over the past years due to its ease of use, increased functionality, proximity to high foot and vehicle traffic areas and customer adaptation to the technology. Customer adaptation and exponential growth in the ATM channel has placed high demands and very high customer expectations on ATM technology, ATM reliability and ATM cash.
Like branch banks, ATMs typically individually determine how much cash is needed to maintain the services that they provide to their customers. Oftentimes, vendors over compensate and as a result, ATMs tend to order substantially more cash than is needed. Such over-ordering puts more cash in inventory than is needed to service customers. The excessive inventory results in substantial costs that could be avoided. Likewise, ATMs may be stocked with much less cash than is needed. This can result in expensive expedited transfers of cash.
Other drawbacks are also present.